Analog Devices, Inc. $ADI Shares Sold by Fenimore Asset Management Inc

Key Points

• Fenimore Asset Management reduced its Analog Devices position by 1.6%, selling 7,428 shares and retaining 464,537 shares worth approximately $184.3 million. Institutional investors and hedge funds collectively own 86.81% of ADI.
• Analysts remain bullish on ADI, with a “Moderate Buy” consensus rating and an average price target of $460.09. Recent quarterly earnings and revenue exceeded expectations, with revenue rising 39.2% year over year.
• ADI shares recently traded around $405.93, while the company offers a $1.10 quarterly dividend, or $4.40 annually. However, its elevated valuation of roughly 48 times earnings and recent insider selling could weigh on near-term sentiment.

Fenimore Asset Management Inc lessened its position in shares of Analog Devices, Inc. (NASDAQ:ADI - Free Report) by 1.6% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 464,537 shares of the semiconductor company's stock after selling 7,428 shares during the period. Analog Devices accounts for 4.0% of Fenimore Asset Management Inc's holdings, making the stock its 5th biggest holding. Fenimore Asset Management Inc owned about 0.10% of Analog Devices worth $184,286,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in ADI. BlackRock Inc. acquired a new position in shares of Analog Devices during the 2nd quarter valued at $18,610,868,000. Bank of America Corp DE acquired a new stake in Analog Devices in the second quarter worth $3,573,081,000. Legal & General Group Plc bought a new stake in Analog Devices in the second quarter valued at $1,525,167,000. Bank of New York Mellon Corp acquired a new position in shares of Analog Devices during the second quarter valued at about $1,326,066,000. Finally, Primecap Management Co. CA acquired a new position in shares of Analog Devices during the second quarter valued at about $1,242,479,000. 86.81% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Analog Devices news, insider Vivek Jain sold 2,000 shares of the company's stock in a transaction dated Friday, October 2nd. The stock was sold at an average price of $416.98, for a total value of $833,960.00. Following the transaction, the insider directly owned 45,733 shares in the company, valued at $19,069,746.34. This represents a 4.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ray Stata sold 1,416 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $377.37, for a total value of $534,355.92. Following the completion of the sale, the director directly owned 114,511 shares in the company, valued at approximately $43,213,016.07. The trade was a 1.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 46,631 shares of company stock valued at $17,657,267 over the last 90 days. Company insiders own 0.36% of the company's stock.

Analyst Ratings Changes

ADI has been the subject of a number of research reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $510.00 price objective (up from $400.00) on shares of Analog Devices in a research note on Tuesday, September 8th. Needham & Company LLC lifted their target price on shares of Analog Devices from $440.00 to $450.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. Weiss Ratings upgraded Analog Devices from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, August 21st. The Goldman Sachs Group reaffirmed a "buy" rating and set a $480.00 target price (up from $450.00) on shares of Analog Devices in a research report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Analog Devices from $450.00 to $500.00 and gave the stock an "overweight" rating in a report on Thursday, August 20th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $460.09.

Analog Devices Price Performance

ADI stock traded down $4.15 during mid-day trading on Thursday, reaching $405.93. 3,703,405 shares of the company traded hands, compared to its average volume of 4,050,445. The company has a fifty day moving average price of $378.46 and a 200-day moving average price of $382.55. Analog Devices, Inc. has a 52-week low of $223.47 and a 52-week high of $445.91. The company has a market capitalization of $196.70 billion, a P/E ratio of 48.15, a P/E/G ratio of 1.30 and a beta of 1.22. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.25 and a quick ratio of 0.91.

Analog Devices (NASDAQ:ADI - Get Free Report) last announced its quarterly earnings results on Wednesday, August 19th. The semiconductor company reported $3.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.34 by $0.11. The firm had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $3.92 billion. Analog Devices had a net margin of 29.79% and a return on equity of 16.39%. The company's revenue for the quarter was up 39.2% on a year-over-year basis. During the same period in the prior year, the firm posted $2.05 earnings per share. Analog Devices has set its Q4 2026 guidance at 3.710-4.010 EPS. As a group, analysts anticipate that Analog Devices, Inc. will post 12.96 earnings per share for the current year.

Analog Devices Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Tuesday, September 1st. Analog Devices's payout ratio is 52.19%.

Analog Devices News Summary

Here are the key news stories impacting Analog Devices this week:

• Positive Sentiment: Analysts remain constructive. Bank of America identified ADI among the strongest analog semiconductor performers. The stock maintains a “Moderate Buy” consensus rating, with an average price target of approximately $460, above recent trading levels. Analog Devices, STMicro and TI seen as strongest analog performers: BofA
• Positive Sentiment: New customer and industry applications support growth prospects. Lekha Wireless is integrating ADI radio technology into 5G and 4G products. Separately, ADI is collaborating with Moët Hennessy and UC Davis on AI-enabled chemical-signature detection for wine production. These projects are strategically positive, although they are unlikely to materially affect near-term earnings. Lekha Wireless to integrate Analog Devices radio technology
• Neutral Sentiment: Fundamentals remain strong, but expectations are high. ADI’s latest quarter exceeded earnings and revenue estimates, while revenue increased 39.2% year over year. However, a valuation near 49 times earnings leaves the shares vulnerable to profit-taking if growth slows or guidance disappoints.
• Negative Sentiment: Recent insider selling is weighing on sentiment. CFO Richard Puccio sold 1,500 shares for about $632,000, and Director Ray Stata sold 1,416 shares for approximately $595,000. The transactions were made under pre-arranged Rule 10b5-1 plans and the executives retain substantial holdings, reducing their significance as a fundamental warning. Nevertheless, multiple recent insider sales can pressure the stock in the short term. Analog Devices SEC insider transaction filing

About Analog Devices

Analog Devices, Inc NASDAQ: ADI is a global semiconductor company that develops technologies for converting, conditioning and processing real-world signals. Its products connect the physical and digital worlds by helping electronic systems sense, measure, interpret and control information such as temperature, pressure, motion, sound and electrical current.

The company's product portfolio includes analog and mixed-signal integrated circuits, power management solutions, radio-frequency and microwave devices, data converters, amplifiers, sensors, microcontrollers, embedded processors and connectivity products.

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